Since the start of the Covid-19 pandemic, fuel sales at petrol stations have declined. A lot of Fuel retailers faced low sales on fuel products and are facing even more challenges in the future. Customers are considering transition to more economical vehicles including hybrids and further into the future alternative forms of vehicles including EV’s.
Because of the restrictions on travel and remote work becoming the new normal, fuel demands have dropped significantly. Petrol Station owners need to adapt to the future of electric and hydrogen vehicles to ensure they can grow their business into the future, but how can they do that?
Adopting the Non-Fuel Retail Experience
Developing an innovative business model to adapt to the future of fuel free service stations will be the key to continuing customer flow. Non-fuel retail products and services are a critical component in making up the revenue lost over the last year and a half.
In the future, implementing artificial intelligence (AI) into customer service will drive how and when consumers make purchases by learning about their unique preferences, encouraging them to shop with brands that match their values and purposes. It will be an integral component of future marketing and selling strategies for fuel retailers, allowing them to create a more personalised experience in their services.
Service Station’s offering non-fuel retail services will need to push the convenience frontier further.
Hyper-Convenience
For the new generation of buyers, technology-driven retail provides a quick, touchless shopping experience that adds to brand differentiation. Digital means have become the increasingly preferred way to shop in day-to-day activities, and petrol stations are no exception.
Offering a digital consumption model, when a consumer’s needs are identified and satisfied in real time without the need for intermediaries (hyper-convenience expectations) will influence supply chain considerations (i.e. home delivery).
Many retailers, mainly overseas, that have already made the leap into new technology are transitioning to cashless stores, home delivery, automated kiosks, and interactive in-store digital displays.
Diversification is key
When a petrol station offers a variety of services other than fuel, customer frequency and satisfaction increases. If someone stops at a service station to refuel, this is a great opportunity to sell additional products and services.
Consumers are generally very time poor and welcome the opportunity to purchase a variety of products and services at the same location. Now is the time to ask your customers what other products and services they would like to see offered in your business. Technology and convenience are the future, and the time to adapt is now.
If you need help with ideas on new products and services you can offer, get in touch with us.